American Airlines sees Q4 fuel bill rising to $2.8 billion

The airline expects to pay near $4.70 a gallon for jet fuel in the fourth quarter, almost double what it paid a year earlier

American Airlines said it expects fourth-quarter fuel costs of $2.8 billion, up from a year earlier.

The airline posted a narrower loss for the third quarter but cut its full-year outlook. Revenue for the quarter came to $16.34 billion, just short of the $16.38 billion analysts had expected. Fuel expense in the quarter had already jumped $1.9 billion, or 67.5%, from a year earlier, with American paying an average of $3.85 a gallon. For the fourth quarter, the airline expects to pay close to $4.70 a gallon, nearly double what it paid in the same period last year.

American widened its full-year loss guidance to a range of $1.00 to $1.60 per share alongside the third-quarter report, citing elevated fuel costs as a reason network growth will slow in 2027. Chief Executive Robert Isom has said he expects record fourth-quarter revenue growth to offset the higher costs, even as he acknowledged fuel prices are historically high. The $2.8 billion figure puts a number on that drag and will test whether revenue can keep pace with it. Isom has separately said growth will decelerate considerably in 2027, a sign the pressure on margins is not expected to ease soon.

American's stock fell in pre-market trading on Thursday. Quartz put the decline at 3.3%, to $11.83, while Investing.com reported a drop of 4.0%. Regular trading had not yet begun.